Ethereum News Today:

SharpLink Gaming, a prominent Ethereum (ETH) treasury firm and the second-largest public ETH holder with $3.6 billion in assets, has announced plans to stake an undisclosed portion of its holdings on the Linea layer-2 network following its mainnet launch on September 10. Joseph Chalom, co-CEO of SharpLink, stated the company is seeking to diversify its staking strategies beyond its current custodians, including Anchorage and Coinbase, to explore higher-yield opportunities. The firm has already staked most of its ETH using native and liquid staking methods and will evaluate Linea as part of its broader portfolio optimization efforts [2].

The decision aligns with SharpLink’s recent strategic shift from its origins as a gambling marketing firm to a crypto treasury model, similar to MicroStrategy’s Bitcoin acquisition strategy in 2020. SharpLink’s pivot began in May with a $425 million private investment in public equity offering, led by Consensys, and has resulted in the accumulation of 837,230 ETH. In late August, the company added another $176 million in ETH to its holdings, bringing its total stake to approximately $3.6 billion in value [3].

Linea, developed by Consensys and led by Ethereum co-founder Joe Lubin—who also serves as chairman of SharpLink’s board—aims to support the Ethereum base layer through mechanisms such as native yield generation and ETH burns. As part of the Linea Consortium, SharpLink has committed to allocating tokens for network bootstrapping, with over 80% of the LINEA token supply intended to support on-chain projects. The Linea tokenomics model includes a dual-burn mechanism, where 20% of ETH gas is burned to support Ethereum’s value, while 80% is used to buy and burn LINEA tokens [2].

Chalom emphasized that staking on Ethereum-aligned layer-2 networks like Linea is not just about yield optimization but also about driving real-world activity that benefits the Ethereum ecosystem. By channeling high-quality on-chain activity to projects aligned with Ethereum, the company believes it can indirectly boost the value of its ETH holdings. “We're here to support Ethereum and the L2s that derive from it,” Chalom said, noting that the firm’s staking and liquidity initiatives are designed to reinforce Ethereum’s long-term narrative [2].

The broader crypto treasury model remains a subject of debate, with some industry voices cautioning against the risks of over-leveraging yield strategies. Chalom himself has warned that firms chasing high returns could expose themselves to credit, counterparty, and smart contract risks. This caution has been echoed by others, including Josip Rupena of Milo, who likened the risks of crypto treasury firms to the pre-2008 collateralized debt obligations crisis. Conversely, Matt Hougan of Bitwise has argued that these firms have helped mainstream investors understand and adopt Ethereum [1].

As SharpLink and others continue to build their ETH treasuries, the industry is watching closely for signs of sustainability. The recent Ethereum price action—trading at $4,327 at the time of publication—reflects ongoing volatility and uncertainty, with market analysts divided on whether the current model will withstand a downturn [1]. Nonetheless, SharpLink’s strategic alignment with Ethereum and its ecosystem partners positions it as a key player in shaping the future of layer-2 networks and institutional crypto adoption.

Source:

[1] ETH Treasury Firms Pose Risks Chasing Yield: Sharplink ... (https://cointelegraph.com/news/ethereum-treasury-companies-greedy-risk-factors-sharplink-gaming)

[2] SharpLink Will Explore Staking Portion of $3.6 Billion ... (https://finance.yahoo.com/news/sharplink-explore-staking-portion-3-162046340.html)

[3] Ethereum Treasury SharpLink Adds $176 Million in ETH to ... (https://finance.yahoo.com/news/ethereum-treasury-sharplink-adds-176-173611609.html)